5 Sep 2013
EUR/USD consolidates after plunge around 1.3110 zone
FXstreet.com (Chicago) - EUR/USD fell below 1.32 and was unable to recover despite finding grounds around 1.3118 zone. Losing 0.68%, the pair tops major worst performers on Thursday’s session.
Plethora of data
Earlier in Europe, the ECB interest rate decision was released at 0.5%, matching past and expected results. In the ECB monetary policy statement, Mario Draghi said “underlying price pressures in the euro area are expected to remain subdued over the medium term” and added “monetary and, in particular, credit dynamics remain subdued.” In the US, declining unemployment strengthened the dollar and lifted up the equities markets. Initial jobless claims were 323K vs. past 332K and expected 330K. Continuing jobless claims were 2.951M vs. past 2.994M and estimates at 2.980M. Nonfarm productivity increased to 2.3% vs. past -1.7% and expected 1.5%. Factory orders were -2.4% for July against expectations at -3.3% and past 1.6% results. The ISM non-manufacturing PMI for August was 58.6 vs. projected 55.0 and past 56.0. Finally, the EIA crude oil stocks change was -1.836M vs. past 2.986M and expected -1.900M.
EUR/USD Technical Levels
Technically speaking, the pair is in consolidation phase after steep 0.68% plunge below 1.32 zone. Offered at 1.3118, the pair oscillates between supports at 1.31 (July 20th lows), 1.3063 (July 18th lows) ahead of 1.3028 (July 11th lows) and resistances at 1.3145 (July 19th highs), 1.3172 (July 17th highs) followed by 1.32 (August 17th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and trades below the EMA20. Market participants wait for nonfarm payrolls in the US tomorrow afternoon along unemployment rates that could provide a more complete picture of the US economy and consequently, reveal whether or not Fed’s tapering is reasonable and probable in the short-term.
Plethora of data
Earlier in Europe, the ECB interest rate decision was released at 0.5%, matching past and expected results. In the ECB monetary policy statement, Mario Draghi said “underlying price pressures in the euro area are expected to remain subdued over the medium term” and added “monetary and, in particular, credit dynamics remain subdued.” In the US, declining unemployment strengthened the dollar and lifted up the equities markets. Initial jobless claims were 323K vs. past 332K and expected 330K. Continuing jobless claims were 2.951M vs. past 2.994M and estimates at 2.980M. Nonfarm productivity increased to 2.3% vs. past -1.7% and expected 1.5%. Factory orders were -2.4% for July against expectations at -3.3% and past 1.6% results. The ISM non-manufacturing PMI for August was 58.6 vs. projected 55.0 and past 56.0. Finally, the EIA crude oil stocks change was -1.836M vs. past 2.986M and expected -1.900M.
EUR/USD Technical Levels
Technically speaking, the pair is in consolidation phase after steep 0.68% plunge below 1.32 zone. Offered at 1.3118, the pair oscillates between supports at 1.31 (July 20th lows), 1.3063 (July 18th lows) ahead of 1.3028 (July 11th lows) and resistances at 1.3145 (July 19th highs), 1.3172 (July 17th highs) followed by 1.32 (August 17th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and trades below the EMA20. Market participants wait for nonfarm payrolls in the US tomorrow afternoon along unemployment rates that could provide a more complete picture of the US economy and consequently, reveal whether or not Fed’s tapering is reasonable and probable in the short-term.